In the latest developments, crypto-supporting clients of Barclays are quitting and looking for hacks and other alternatives after Barclays imposed fines for being used for money laundering. Moreover, they also barred transactions and payments to the crypto exchange, Binance in an attempt to protect customer’s funds.
Some of these angry customers are showing interest in using Revolut- UK based online mobile banking app, which appears to be more crypto-friendly. They plan to do so by converting their GBP to EUR. While others suggesting to take another step ahead and change their bank collectively and open up accounts in another UK-based online bank Monzo. Some other alternate banking options also include Halifax, Lloyds, HSBC, and Santander. Since there are rumors that more banks may tend to follow Barclays’ lead, therefore, for many customers the best option is to change countries.
Barclays’ users complained yesterday that the bank has ceased any credit/debit card payments to Binance. The bank later posted a tweet saying that it’s their “responsibility to protect customer’s money” and that any payments to Binance will be ceased “until further notice.”
Considering the situation, Binance also responded to the situation and said that some partners are taking unilateral decisions to stop serving the Binance users. This is based on a misunderstanding of events and repeated that the FCA (Financial Conduct Authority) notice was not against the user’s deposits on Binance.com. Rather related to BML, a company that is incorporated in the UK and regulated by the FCA.
FCA told Binance UK operations last month to stop providing financial activities in fiat on British soil. However, Binance claimed that this will not affect British Binance customers because the company is based and operates from the Cayman Islands. But later on, Binance’s UK customers reported that their GBP withdrawals via faster payments network have been stopped. There were also interruptions reported on their bank card-linked transactions, to which Binance said that the issue had been fixed.
The overall situation pretty much establishes the fact that Barclays’ steps have utterly aggravated customers. Because of which they keep a viewpoint that this is exactly why they prefer to use Bitcoin. Because the bank considers its customers’ money as its own by putting guard rails on how it is used. Whereas, it should be the customer’s discretion to how they feel like using their money. Some think that the bank gives this right to itself is because many non-crypto bank customers expect the bank to bail them out in the event of scams.
There’s a key point to note here that Barclays has been fined previously for various reasons. It also had been accused of being linked to such sanctioned personalities involved in money laundering. A BBC report from Sep. last year indicated various leaking documents which showed that the Russian billionaire, Arkady Rotenberg might have used Barclays London for money laundering purposes. Arkady is also considered as Vladimir Putin’s best friend and someone who was sanctioned by both US and EU back in 2014.
Later on, in 2015, FCA had also imposed a fine on Barclays 2015 for GBP 72m / $ 99.9m for failing to reduce the risk of being used to aid financial crime.